Foreign Relations of the United States, 1958–1960, Foreign Economic Policy, Volume IV

300. Memorandum From the Assistant Secretary of State for Economic Affairs (Mann) to Acting Secretary of State Herter⁰

September 10, 1959.

SUBJECT

• Briefing Paper—Proposed Policy on Strategic Materials

The attached Cabinet Paper 59–78/2, “Proposed Policy on Strategic Materials” (Tab B),¹ is scheduled for consideration by the Cabinet on September 11, 1959. The paper, prepared in response to a Cabinet request of last April, contains a comprehensive review of the Government’s stockpile policies and related matters, and presents six recommendations.

In the attached group of papers, the Cabinet Paper is preceded by a cover sheet and a two-page summary or “brief” (Tab A).² Additional background information is presented in a third document which is an OCDM staff report (Tab C). Also attached for information are Defense Mobilization Order V–7, entitled “General Policies for the Stockpile of Strategic and Critical Materials” (Tab D), and Cabinet Paper 58–78/1 (Tab E), which contains the general stockpiling policies approved by the Cabinet on April 18, 1958.³

The Cabinet Paper and its summary present no problems for the Department. They have been carefully reviewed by the Department’s representatives at a series of interagency meetings, and all of the important suggestions offered by us have been accepted.

The need for disposing of excess stockpile materials is more affirmatively stated than in the paper approved by the Cabinet in April, 1958. However, it is clearly provided that such disposals must not seriously disrupt usual markets or adversely affect the international interests of the United States, and that there must be prior approval of the interested agencies, including the Department of State.

With regard to the proposed new legislation to achieve better coordination and management of all stockpile programs, the Department has forwarded to the Budget Bureau certain comments and recommended changes,⁴ aimed primarily at emphasizing the foreign relations aspects of stockpile disposals. There is no prospect of action by Congress at this session.

The paper, in addition to containing no provisions which are objectionable from the Department’s viewpoint, is more explicit than were earlier policy statements in ensuring that due regard be given to the foreign relations of the United States, and approval by the Cabinet would therefore seem desirable.

0. Source: Eisenhower Library, Herter Papers, Cabinet, 1959. Secret. Drafted by Donald S. Spigler of the Commodities Division of the Office of International Resources. Cleared in draft with Robert M. Carr, Chief of the Office; Clarence W. Nichols, Acting Special Assistant in the Bureau of Economic Affairs; Sydney L. W. Mellen, Chief of the Commodities Division; and Wingfield N. Chamberlain of that Division.
1. None of the tabs was attached. The text of Cabinet Paper 59–78/2, August 20, 1959 (Tab B), and the paper as approved, CP–59–78/3, September 30, are ibid., White House Office Files, Cabinet Secretariat, Stockpiling. For the discussion at the Cabinet meeting, see Document 301.
2. The briefing paper is attached to Tab B.
3. The OCDM staff report (Tab C) was also attached to CP–59–78/3; see footnote 1 above. Regarding Defense Mobilization Order V–7 (Tab D), see footnote 2, Document 280. Cabinet Paper 58–78/1 (Tab E), is in Eisenhower Library, White House Office Files, Cabinet Secretariat. An account of the Cabinet meeting, April 18, is ibid., Whitman File, Eisenhower Diaries.
4. Not found.